Answer
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Explanation
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Answer:
It can be concluded about the elasticity of demand and supply prices that supply is more elastic than demand
Explanation:
Price in the market is determined by demand and supply, it is measured in terms of the variables quantity and variables price. When a tax is placed on a product, it generate a change in the market equilibrium, this is because buyers pay more and sellers receive less.
Therefore, a tax causes the supply curve to move up and the demand curve to move down.
To know the distribution of tax, the incidence is measured through the elasticity of the supply and demand curve, which measures the sensitivity of the quantity, demanded of products before a price change.
If the supply curve is more elastic than the demand curve, this is because when the price paid by consumers increase more than the price the sellers receive decreases, the impact of the tax is stronger for consumers.
The total tax on a unit of bottled water =
$2.50 - $2 = $0.50
$2 - $1.75 = $0.25
$0.15 + $0.25= $0.75
Answer:
A. No gain or loss
B. Carryover; $2,338,000
Explanation:
A. Based on the information given the Corporation’s RECOGNIZED NO GAIN OR LOSS on the liquidation reason been that under SECTION 332 GOOSE'S BASIS IN THE SWIFT STOCK OF THE AMOUNT OF $3,340,000 IS REDUCED TO ZERO AMOUNT.
B. Based on the information given the Corporation’s BASIS IN THE ASSETS RECEIVED IN LIQUIDATION will be CARRYOVER BASIS of the amount of $2,338,000.
Answer:
C. increase by about 6 percent.
Explanation:
Since,

Sales = $ 120,
Original expenses = $ 65
Thus, contribution margin ratio = 
New expenses = $ 58,
Thus, contribution margin ratio = 
∵ 52 - 46 = 6,
Hence, the CMR is increased by 6%.
OPTION C is correct.